Egypt seeks to increase its income from gold mines 6-fold

AngloGold Ashanti recently acquired Centamin, which was investing in the mine, and pumped new investments into the Egyptian mining sector.

During the meeting, the Egyptian Minister expressed his aspiration for a strategic partnership in the Sukari gold mine, and to increase the mining sector’s contribution to the Egyptian economy to up to 6 times its current contribution.

Badawi pointed out that the mining sector has great potential that makes it eligible for a greater contribution to the national product, similar to the experiences of many countries, explaining that its current contribution does not exceed 1% of the Egyptian national product, while there is an opportunity to increase it to between 5-6% over the years. In the medium term, by intensifying cooperation and integration, facilitating investment, and supporting mining ore processing industries.

The Minister affirmed the Egyptian government’s commitment to developing the mining sector, creating an attractive environment for investment in this sector, and providing great investment opportunities.

According to the statement, Marcelo Pereira da Silva, First Vice President of AngloGold Ashanti for the Latin America region, confirmed that investing in Egypt is a “great opportunity,” and that the company is seeking a successful long-term partnership in Egypt with the Sukari mine project.

Anglo Ashanti Gold Company, listed on the New York Stock Exchange, ranks fourth in the world in the classification of gold producing companies, and acquired about 83.6% of Centamin Company, which operates the Sukari mine, for $2.5 billion last month.

The Sukari mine has produced 5.8 million ounces since the start of work, while the mine’s production in 2023 will reach about 470 thousand ounces of gold.

Centamin Mining Company stated last March that the mine is heading to produce about 500,000 ounces of gold annually on an ongoing basis in the long term, with the end of a reinvestment program this year.

Source: RT

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⁤What impact will the acquisition of Centamin by AngloGold Ashanti have on ‌local communities and job creation in the Egyptian mining sector?

**Interview with Dr. Ahmed El-Sayed, Mining Expert and Economic Advisor**

**Interviewer**: Thank you for joining us today, ‌Dr. El-Sayed. As you know, AngloGold Ashanti has recently acquired Centamin as part of a significant move in the gold mining sector. Can you share⁢ your thoughts on ‍the implications of this acquisition for the Egyptian mining industry?

**Dr. El-Sayed**: Thank you for having⁤ me. The ​acquisition of Centamin by AngloGold‌ Ashanti, valued at $2.5 billion,​ is indeed a pivotal moment for the mining sector⁣ in Egypt. This partnership not only solidifies AngloGold Ashanti’s position as one of the leading gold producers worldwide but also enhances investment prospects in the ‌Sukari gold mine, which is pivotal for economic⁣ growth in the region.

**Interviewer**: What⁢ does this mean for⁤ the Sukari gold mine‍ specifically?

**Dr. El-Sayed**: The Sukari gold mine is one of Egypt’s largest and most profitable mining operations. With AngloGold Ashanti’s acquisition, we can expect an influx of‌ investment aimed at expanding​ and modernizing the infrastructure. The Egyptian Minister has expressed aspirations for​ a ​strategic⁣ partnership regarding Sukari,‍ which indicates that the government is keen on seeing increased contributions‌ from the mining sector‍ to the economy. This could potentially lead to job creation⁤ and improved local economic conditions.

**Interviewer**: Speaking of economic contribution, how ‌significant is the potential increase of the⁢ mining sector’s role​ in Egypt’s economy?

**Dr.‍ El-Sayed**: The Egyptian‍ government has ambitious goals to enhance the mining sector’s contribution to the GDP. Currently, it ⁣is around 1% to 2%, but there are aspirations to increase this significantly. With ‌strategic investments and partnerships, particularly following this acquisition, we could see a more substantial role for mining in the economy, which might include not only gold but also ​other minerals that ‌Egypt has in abundance.

**Interviewer**: In⁢ light of this acquisition, what challenges do you ⁤foresee for AngloGold Ashanti⁤ and Centamin in Egypt?

**Dr. ‌El-Sayed**: While the prospects are ‍promising, there are challenges ahead. The regulatory environment in ⁤Egypt can ⁤be complex, ‌and navigating it will be crucial for AngloGold Ashanti. Additionally,⁤ community relations and‍ local workforce engagement will be ‍vital​ to ensure that the benefits of mining are‍ felt ‌by the ⁤surrounding communities. Sustainable practices will also ⁣be increasingly important to align with global standards and ⁣expectations.

**Interviewer**: ⁤how do you see the future of gold mining in Egypt with this‍ significant move?

**Dr. El-Sayed**: The future looks promising. With the strategic partnership between AngloGold Ashanti and Centamin, along with a supportive ⁣governmental ⁢approach towards investments, Egypt could‍ emerge as a key player ⁢in the global gold mining sector. If ⁣managed well, this could lead to sustainable economic growth and development in the mining industry, benefiting not⁢ only the investors but also​ the local communities and the Egyptian economy as a whole.

**Interviewer**: Thank you for your insights, Dr. El-Sayed. It’s an exciting time for ​the ⁤Egyptian mining sector.

**Dr. El-Sayed**: Thank ‍you. I look⁤ forward to seeing how these developments unfold in the upcoming ​years.

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